What does KYC stand for?

KYC stands for "Know Your Customer" or "Know Your Client." It is a set of standards and processes used in the financial services industry to verify the identity and assess the risks associated with customers or clients. KYC is an integral part of anti-money laundering (AML) policies.

Which industries need to implement KYC?

KYC is relevant across various industries, but it is especially important in banking, finance, insurance, real estate, and cryptocurrency. It is crucial for securely conducting global payments. Different countries have their own regulatory bodies that enforce KYC rules.

How can a business perform KYC checks?

Businesses can perform KYC checks by implementing standardized procedures for customer identification and verification. This can include setting up automated customer identification programs and conducting due diligence at the initiation of new relationships and at specific milestones.

What are KYC documents?

KYC documents are documents used to verify a customer's identity and other relevant information. Common KYC documents include a copy of a customer's driver's license, passport, or proof of address. These documents can be collected during the onboarding process and may be digitized for online KYC processes.

Can KYC be carried out digitally?

Yes, KYC can be carried out digitally through eKYC (electronic Know Your Customer) processes. In many countries, regulations and technologies allow for secure digital identification methods and document verification, making online KYC feasible and efficient. For businesses looking to implement KYC procedures, it is important to consult with legal and regulatory experts to ensure compliance with local laws and regulations related to customer identification and anti-money laundering.